TaxTMI 
TaxTMI 
2025 (1) TMI 1123
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....The order dated 03.11.2014 passed by the learned Commissioner of Income-tax (Appeal) is bad in law and in facts. 2. That the Ld. CIT(A) has erred in upholding the reopening of assessment despite the fact that no fresh material was available with the AO warranting issue of notice u/s. 148 of the I.T. Act. 2.1 That all the facts related to actual payment/non payment of sales tax, provident fund and ESI were available in Annexure H and Annexure I to the tax audit report filed in the form no. 3CD and hence, notice issued u/s. 148 tantamount to change of opinion which is not permissible under the law. 2.2 That the Id. CIT(A) has erred in not considering the fact that prior to issue of notice u/s. 148, the AO had issued....
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....otice decision of Hon'ble Supreme Court in the case of SM Overseas Pvt. Ltd. vs. CIT in Civil Appeal Nos.3612-3613 of 2012 dated 7th December, 2022, which is placed at page 215A of the paper book. 3. On the other hand, ld. DR of the Revenue relied on the orders of the authorities below. 4. Considered the rival submissions and material placed on record. We observed from the record submitted before us mainly the approval form submitted by the AO before the ACIT/Commissioner of Income-tax dated 27.03.2012. As per the reasons to believe recorded by the AO are as under :- And notice issued u/s 154 of the Act for rectification of mistake u/s 154 of the Act, for the sake of clarity, the same is reproduced below :- 5. From the above, we....
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....ceedings under Section 154 were invalid because the same were beyond the period of limitation." 6. Respectfully following the above decision, we are of the view that in the proceedings initiated u/s 154, the AO has not acted upon pending proceedings u/s 154, the AO cannot initiate the proceedings u/s 148 of the Act which is beyond his jurisdiction. Two simultaneous proceedings cannot be initiated. Respectfully following the decision of Hon'ble Supreme Court in the case of S.M. Overseas Pvt. Ltd. (supra), we are inclined to quash 148 proceedings as bad in law. Accordingly, ground no.2 is allowed. 7. All other grounds are not adjudicated at this stage and kept them open. 8. In the result, the appeal of the assessee is partly allowed.....
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.... Reasons to believe that income has escaped assessment Whether the Addl. CIT/CIT is satisfied on the reasons recorded by the I.T.O. that it is a fit case for issue of notice 12 u/s 148 1068980/- Under assessment. As per the 3CD report Sales of 2 units amounting to Rs.21,80,587/- were to be disallowed and PF and ESI contribution amounting to Rs.18,35,500/- were not paid yet. These expenditure should have been disallowed. The omission to do so resulted in under assessment of income by Rs.40,16,087/ and short levy of tax of Rs.16,45,937/- In view of the above facts, I have therefore, reason to believe that by reason of omission or failure on the part of the assessee to disclose truly and....